Large Kyiv bank goes bankrupt

Vice-Governor of the National Bank of Ukraine (NBU) Kateryna Rozhkova announces that the NBU decided on April 5, 2016, to include Kyiv-based Khreschatyk Bank in the group of insolvent banks.

"Late last week, the situation with the bank's liquidity sharply worsened. Experiencing lack of funds, the bank made transfers with delays, and was unable to handle the situation without the shareholders' help," she said at a press conference on Tuesday.

According to her, the central bank conducted talks with the shareholders, but they did not bring expected results.

"Taking this fact into account and Khreschatyk's failure to meet capital liquidity requirements, the NBU's board designated the bank as insolvent," she said.

The bank's major shareholders are Andriy Ivanov with 37.44%, Kyiv City State Administration with 25%, Mykola Soldatenko with 24.24%, and some minority shareholders.

According to Rozhkova, the bank's liquidity worsened after some enterprises owned by the bank's shareholders had transferred their accounts to other banks.

Managing Director of the Individuals' Deposit Guarantee Fund Andriy Olenchyk, who was also present at the press conference, said that the Fund had introduced an interim administration at the bank in keeping with the NBU's decision on its insolvency.